Cryptocurrency lending firm, Celsius has asked its clients to give it more time to restore its operations.
Recall that Celsius had halted transactions and withdrawals last week, citing extreme market conditions.
In a tweet yesterday, Celsius said that restoring operations and liquidity would require time. “We want our community to know that our objective continues to be stabilizing our liquidity and operations. This process will take time,” the company said in a blog post.
“As has been a priority since our company’s inception, we maintain an open dialogue with regulators and officials. We plan to continue working with regulators and officials regarding this pause and our company’s determination to find a resolution.” Celsius said.
Following this decision, a web3 Investment firm, and Celsius Lead investor, Bnk for the Future
has solicited to come up with a recovery plan for Celsius. Bnk to the Future had led the first investment round for Celsius and according to its founder, Simon Dixon, was also open to any potential insolvency that might occur.
Dixon also disclosed that he has invested a portion of his wealth into Celsius but was “more concerned for community members that may have a chance at preserving a larger percentage of their wealth through a recovery plus an education in risk management.”
However, as of Tuesday morning, Celsius was yet to give any solid information regarding its recovery plan.
It however warned investors of the proliferation of accounts posing to be connected with the platform.
The firm had also announced via the blog post that it was closing some of its communication channels at the moment to focus on its liquidation and operation issues.
Speculations regarding the health of Celsius remain a topic in the crypto space.
The recent cease-and-desist orders against the firm by law enforcement agencies since April 2022 and the recent announcement that non-accredited investors could no longer transfer funds have heightened speculations regarding its state of health.